Even if you're aware of the free car rental insurance provided by credit cards, unless you read the fine print on your credit card agreements and rental car contracts, it's just plain confusing knowing how your car rental would be protected. This infogaphic from Credit-Land spells it all out.

Credit cards often come with benefits other than cash back or other rewards that we forget about…
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To get comprehensive insurance coverage from major car rental services, you could pay $28 a day—more than half the $48 daily cost of renting a mid-size car, according to Credit-Land. Meanwhile, credit card companies offer free collision and auto theft coverage, as well as towing service.

Generally, however, the credit cards don't offer free supplementary liability insurance—damage to other vehicles, property, or people—and luxury vehicles are also excluded from protection.

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American Express, however, offers premium car rental insurance that covers all of the above for $24.99 per rental period, or if you currently have personal car insurance, they may cover the damages if you get into a fender-bender with your rental car.

Here's the final recommendation:

To choose or not to choose Credit Card Rental Protection?
Credit card car rental insurance is always considered secondary coverage – it covers you if you don't have other car insurance or if you do not purchase insurance from the rental company. A very important thing to know is that with any credit card rental insurance, buying the coverage from the rental company will invalidate your credit card insurance coverage. You can't get coverage from both sources at once. However, if your personal car insurance has a deductible, then your credit card will cover that amount. Keep in mind, although your rented vehicle is protected, you will need AMEX Premium coverage or a separate insurance to cover possible medical expenses and damages you may cause by accident. As always, the best solution is to be careful while driving.